Strategies for Retaining IT Staff in a Highly Competitive Environment

1. Strategies for Retaining IT Staff in a Highly Competitive Environment CUMREC 2001 Jim Standen Phoenix, Arizona Manager May 14, 2001 Information Technologies University of Calgary

2. Alternate Title • Strategies for Retaining IT Staff in a Highly Competitive, Restrictive, Challenging and Sometimes Frustrating Environment.

3. Flow Chart Background Define “Challenging Environment” Industry Statistics Prove we Have Good Staff Retention Questionnaires Industry and Local Why ? Follow up Resources & Q & A 10 Strategies

4. Background • This initiative of mine started as a suspicion we were doing well in the IT staff retention arena. Industry was (and is) offering tremendous financial rewards and we could not compete, but our retention rate seemed good. I wanted to look “under the hood.” • Find proof of what we were doing and “grow the program.”

5. Background • One of my motivations came from “fear”. A very large loss of staff in one year in 70s. I understand the costs of staff replacement.

6. Flow Chart Background Define “Challenging Environment” Industry Statistics Prove we Have Good Staff Retention Questionnaires Industry and Local Why ? Follow up Resources & Q & A 10 Strategies

7. Where is Calgary ? Alberta

8. The City of Calgary • Population 900,000

9. Calgary, Alberta, Canada • Overview • home of the Calgary Stampede • host of 1988 Winter Olympics • low cost of living • no sales tax (equiv. State tax) • Environment • nestled in foothills, close to mountains

10. Calgary, Canada (con’t) • Industry (Prosperity) • Agriculture • Oil/Natural Gas based industry • Texas North • vibrant today (Oil - $27, Gas - $5) • Late 80’s, diversification to high tech and manufacturing • boom (silicon Valley North) • THE BOTTOM LINE • In IT, low unemployment/high salaries (except public sector)

11. And us ...

13. The University of Calgary • 25,000 full & part-time students • 20,000 Con’t Ed • 1,700 Faculty • 2,100 Support Staff

14. The University of Calgary • 16 faculties • 11 undergraduate • Law • Medicine • Environmental Design • Graduate Studies • Continuing Education

15. The University of Calgary (1966) • Canadian Social Model - Dependent on Government Funding • Province had enormous debt • Government Fiscal Agenda - 90’s • eliminate “deficit financing” (by law) • eliminate “debt” (high priority) • translated to belt-tightening (reduced fund transfers) to Education and Health care

16. The University of Calgary • challenging environment for U. • Salary Restrictions (frozen). • Base budget reduced over time (as was health care and K-12 education) • No other sources of funding • “Fun” projects like converting dozens of business systems for Y2K (cobol)

18. And … It Worked ! • Province (oil factor) • No deficits for a decade • Huge annual surplus’s, debt almost retired • provincial tax dropping • Calgary is booming !!! • Business likes “stable environment” • IT staff in high demand • University of Calgary • Budget dollars returning, but not base (salary) budget (vote based priorities).

19. Summary of the Challenge • University restricted • low salaries • City vibrant and expanding • high salaries • Little flexibility

20. Flow Chart Background Define “Challenging Environment” Industry Statistics Prove we Have Good Staff Retention Questionnaires Industry and Local Why ? Follow up Resources & Q & A 10 Strategies

21. IT Staff Retention Rate • How to measure ? • Select an appropriate group • IT Department Only • “Admin” staff - like down town • 56 staff

22. Measuring Success • Statistics derived from our Human Resources data bases • Normalized • subtracted Natural Retirees • accommodate those who left and returned • contracts • summer students • internal transfers

23. Measuring Success • Of those staff that were here 10 years ago: • we retained 80% • not coasters

24. Measuring Success • During those 10 years • We have hired 34 people • We retained 27 or 79%. • I have personally not lost a staff member since 1994.

25. Measuring Success • Industry Statistics - Courtesy CIO Canada magazine, February, 2000. Page 11. • In Canada, current annual IT employee turnover rate averages 9% • Historically, the turnover rate has been as high as 20%. • (Ours is approximately 2%)

26. Summary • In a highly competitive, restrictive and challenging environment, we have high staff retention. • Why ?

27. Flow Chart Background Define “Challenging Environment” Industry Statistics Prove we Have Good Staff Retention Questionnaires Industry and Local Why ? Follow up Resources & Q & A 10 Strategies

28. Why our success ? What are our hidden assets ? How to measure?

29. Why • How to get a handle on “Why ?” • What is an ideal job ? • How good are we at providing it ? • How do you measure how well you are doing? (Unlikely to ask those staff who left). • Needed a “starting point” for understanding why my staff work for me.

30. Measuring Success • 2000 survey report by Pricewaterhousecoopers and Computerworld Canada (from newspaper) • rate 0 (low) -10 High) the importance of 37 statements - average calculated. Ranked from most to least importance. • I list the first 9 (most desirable). The others are available from the presentation follow-up resources.

31. Across Canada

32. How important is it to you that an employer(It is very that my employer ….) Overall Rating

33. Some Observations • Salary is not as important as other job characteristics • “Provide a high base salary” • rated # 11 out of 37 traits • “Provide pay-for-performance/bonuses?” • rated # 24 • “Include stock options as compensation?” • rated # 32

34. Some Observations • High Ranking was: • Training (#4, #6 and #9) • respectful treatment (#1), effectively managed (#2) and rewarding job role (#7).

35. Measuring Success • I initiated my own survey • Same questions/same ranking (0-10). Averages taken and ranked in order from most to least importance. • Added another criteria • how well are we doing at achieving your goals? Ranked from most to least importance. • 10 staff

36. Measuring Success • Ratings • first numeric column has overall importance • second has “how well are we doing” • I list the first 9 (most important). The others are available from the presentation follow-up resources.

37. My Staff

38. How important is it to you that an employer(It is very that my employer ….)

39. Some Observations • On the salary topic, similar results to the national survey • “Provide a high base salary” • rated # 22 (11) out of 37 traits (good because salary increments not an option) • “Provide pay-for-performance/bonuses?” • rated # 27 (24) • “Include stock options as compensation” • rated # 36 (32)

40. Some Observations • Other results similar as well. • #5, #8 and #9 was Training (#4, #6 and #9) • #2 - respectful treatment (#1) • #6 - effectively managed (#2) • #3 - rewarding job role (#7) • #4 - Health care benefits (#3) • #7 - Employment Security (#18) • #1 - Relaxed Environment (#12)

41. How are we doing at meeting these needs:

42. Some Observations ISSUES - TRAINING • Although Training is highly desired (#5, #8 and #9) the employees rated us at delivering (#26, #33 and #23).

43. Some Observations ISSUES - MANAGEMENT • “Have supportive, effective management” (#6) rated 17th. • On discussion, I determined this was for the full organization. I followed up with yet another survey splitting “Management - me” and “management - overall”. This moved me to 12th and the remaining management to 25th.

44. Follow up Activities • I also followed up the survey with “are there any other questions we should be asking ?” • none were suggested

45. Summary of the Survey Results • Staff are unsatisfied with education in General (we are not delivering to their expectations) • Staff unsatisfied with Management

46. Flow Chart Background Define “Challenging Environment” Industry Statistics Prove we Have Good Staff Retention Questionnaires Industry and Local Why ? Follow up resources & Q & A 10 Strategies

47. Guidelines • I created 10 guidelines for myself (Jim’s top 10). • Examples from my team (10 staff) • connected to survey responses • consider in your own environment. • A smorgasbord of options • pick examples which work for you. These are not one size fits all solutions.

48. 1. Stability • Higher Ed is less likely to Merge, Consolidate, go bankrupt. Less susceptible to market forces (tech falldown) • Example: employee who worked for a high tech firm down town for 30 days before it caved. Came to us for a long term stable environment.

49. 1. Stability (cont’d) • Employee Rewards: • stability. • reduced stress. • My Survey - in order of Importance • #6 - Provide supportive, effective Management • #7 - Provide Employment Security • Consider: selling your job environment for the stability it provides.

50. 2. Broad Working Role • Higher Ed, due to necessity tends to have broad based job roles. • Example: On a recent project, one of our employees performed a Cradle to grave project. The project included: • gathering user specifications (with client) • software design, hardware configuration, • database design • coding and testing (with client) • implementation • met with client for sign off / thank you’s